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Tide Turning Down in Petroleum Prices


While crude oil prices this morning remain near yesterday’s high, a-number-of bearish developments overnight should leave pressure on prices through another trading session. While yesterday’s EIA crude stocks decline was initially supportive, the energy trade eventually settled on the sharper than expected jump in gasoline stocks as a sign that increased fuel supply is already flowing ahead of the seasonal increase in demand.

US gasoline inventories this week posted an even wider annual deficit than the prior week, but that impact was offset by the larger than expected weekly inflow to inventories.


The difficulty in predicting lower natural gas prices is the fact that prices are already historically cheap. However, supply weighs heavy on sentiment and demand appears to be anemic. Expectations for this week’s injection report pegged a top end inflow around 25 BCF but in the event of a larger than expected inflow, prices could fall to new lows for 2021.

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